WHIPSAW - Whipsaw is a condition in which a security's price heads in one direction, but is followed quickly by a movement in the opposite direction. There are two types of whipsaw patterns, with the first involving an upward movement in a share price, which is then followed by a drastic downward move, causing the share's price to fall relative to its original position. The second type occurs when a share price drops in value for a short while, and then suddenly surges upward toward a positive gain, relative to the stock's original position.